Dominic Barton to seem Wednesday earlier than committee reviewing spike in federal outsourcing to McKinsey & Co.January 27, 2023
McKinsey & Firm’s onetime world managing associate, Dominic Barton, additionally a former senior coverage adviser to the Trudeau authorities, will seem Wednesday earlier than a parliamentary committee reviewing the spike in federal outsourcing to the New York-based consulting large.
Federal officers informed The Globe and Mail this week that upon additional assessment, the overall worth of federal contracts awarded to McKinsey since 2015 is not less than $116.8-million, up from a earlier estimate of $101.4-million offered earlier this month.
Members of Parliament resume sitting Monday for the primary time since mid-December and the federal government operations committee will instantly start its examine of federal outsourcing to McKinsey.
The hearings will begin off with researchers from Carleton College, who’ve been main an in depth assessment of federal outsourcing and have made coverage suggestions as to how Ottawa may study from different nations and enhance the best way it hires exterior assist.
Then Wednesday, the committee will hear from Mr. Barton for 2 hours.
Mr. Barton was the pinnacle of the worldwide consulting firm till 2018. Within the early years of Prime Minister Justin Trudeau’s Liberal authorities, Mr. Barton acted as each the pinnacle of McKinsey and the chair of former finance minister Invoice Morneau’s advisory council on financial development.
The council was supported by McKinsey employees and made a number of main coverage suggestions, lots of which have been enacted to not less than a point by the Liberal authorities, together with dramatically growing Canada’s annual immigration targets and making a Canada Infrastructure Financial institution.
After leaving McKinsey, Mr. Barton was appointed as Canada’s ambassador to China in September, 2019. His international posting resulted in December, 2021. That very same month, it was introduced that Mr. Barton would turn into chairman of Rio Tinto, a world mining firm.
The Globe and Mail first reported in January, 2022, that the worth of outsourcing to McKinsey has climbed steadily beneath the Liberals. Whereas the corporate additionally acquired contracts beneath the earlier Conservative authorities, the worth of federal contracting work had declined to zero in that authorities’s ultimate years earlier than the Liberals took over in 2015.
Earlier this month, Public Providers and Procurement Canada (PSPC) offered costing data, saying it had awarded 23 contracts to McKinsey since 2015 with a complete worth of $101.4-million.
The division adopted up this week to say the most recent information exhibits the corporate has acquired 24 contracts, with a complete worth of $104.6-million, by way of PSPC as the federal government’s central purchaser. The division stated its earlier estimate “was correct on the time.” Nevertheless, a refresh of the division’s contract administration system has since discovered a lately issued contract value $3.2-million.
Officers say the precise complete is larger.
“Along with this, work is ongoing to assemble data on contracts awarded to McKinsey & Firm by different departments and companies beneath their very own contracting authorities,” the division stated.
It stated an preliminary assessment has discovered an extra 10 contracts, value a mixed $12.2-million, awarded to McKinsey by different departments and companies. That brings the overall to not less than $116.8-million. The division notes that “this isn’t thought of the ultimate or exhaustive checklist.”
Throughout a Jan. 18 assembly, the federal government operations committee authorised an amended model of a movement from Conservative MP Stephanie Kusie calling for hearings into McKinsey contracts and for the corporate and authorities departments to supply in depth documentation, together with contract data.
Ms. Kusie informed MPs the parliamentary examine is warranted as a result of McKinsey is dealing with quite a few worldwide controversies, together with reaching a settlement over its function in selling opioid gross sales and being investigated by France’s monetary prosecutor over tax fraud allegations.
“Why would the Prime Minister determine to work with an organization that has such a questionable moral background?” Ms. Kusie requested whereas proposing her movement.
Robert Palter, senior associate with McKinsey, wrote within the letter to the committee this week to say the corporate is dedicated to co-operating with the examine.
The letter notes that among the requests search confidential data or supplies coated by contractual commitments to shoppers.
“As such, we’d recognize the chance to debate with you confidentiality protections. With respect to witnesses, we’re working to establish the names of senior witnesses to testify,” the letter states.
On Monday, the committee will hear from Amanda Clarke, a Carleton College affiliate professor of public administration and digital governance, who leads a analysis workforce that analyzes federal contract spending developments. Dr. Clarke has printed a number of coverage suggestions for the way Ottawa may enhance its method to outsourcing, together with by issuing smaller contracts.
Dr. Clarke can be joined by her analysis colleague Sean Boots, who’s a public servant-in-residence at Carleton College, on mortgage from the Treasury Board’s Canadian Digital Service.
The committee may also hear on Monday from Jennifer Carr, the President of the Skilled Institute of the Public Service of Canada. Ms. Carr and her public-sector union have printed analysis warning that the federal authorities is making a shadow public service by way of the extreme use of out of doors consultants and contractors.